Lynas Rare Earths has officially opened the largest rare earths refining plant outside of China in Kalgoorlie, Australia, on November 8, 2024.

This $800 million facility is the first of its kind in Australia, designed to convert rare earth ores from the Mt Weld mine into carbonate, which can be further processed into separated rare earth materials.

The plant began processing its first batch of mixed rare earth carbonate in June 2024, ramping up production to meet market demand.

Employing between 115 and 120 local workers, the facility processes rare earth concentrate sourced from the nearby Mt Weld mine, located approximately 380 kilometers northeast.

However, the project has faced significant challenges, including cost overruns of around $225 million and delays in sourcing sulphuric acid following the suspension of BHP Nickel West operations.

Lynas is currently seeking alternative sources of sulphuric acid after the closure of BHP's smelter impacted their supply chain.

Despite these hurdles, Lynas successfully reached production levels amidst the global pandemic's onset in March 2020.

As of October 2024, Lynas' CEO Amanda Lacaze reported progress in ramping up operations at the facility.

The establishment of this plant aligns with Western nations' efforts to create independent supply chains for rare earths, reducing reliance on China, which dominates the market.

Federal Resources Minister Madeline King emphasized that increasing domestic processing of critical minerals is part of the Albanese Government's strategy to strengthen Australia's economic future and sovereign capabilities.

During the inauguration, King highlighted the historical significance of the Kalgoorlie Nickel Smelter and the new facility's role in providing local employment and economic stability.

Despite the opening of the new facility, rare earth prices have remained stagnant due to a surplus caused by overstocking in China.